India is set to oppose the continuation of the moratorium on customs duties on e-commerce trade at the upcoming World Trade Organisation (WTO) meeting in Abu Dhabi later this month. An official stated on Tuesday that the current moratorium is adversely affecting developing countries, emphasizing the need to prioritize the development dimension over the interests of big tech companies.
Opposition to Extension: “We are not in favour of an extension. We are in favour of the continuation of the work programme. There is a need to look at the subject from a development dimension and not from the eyes of big tech companies,” the official asserted. India advocates for a clear definition of e-commerce trade and emphasizes the necessity of policy space for the sector.
Revenue Implications and Estimates: The potential tariff revenue losses to developing countries due to the moratorium are estimated to be around $10 billion annually, with India potentially facing over $500 million in losses every year. The official highlighted the urgency of discussing the scope of the moratorium, considering its revenue implications.
Key Discussions at WTO Meeting: The subject of the moratorium on customs duties for e-commerce trade is expected to be a prominent agenda item in the meeting of 164 trade ministers scheduled to gather in Abu Dhabi from February 26-29. The WTO members have refrained from imposing customs duties on electronic transmissions since 1998, and the moratorium has been periodically extended at successive ministerial conferences.
India’s Concerns and Past Advocacy: India, along with South Africa, has previously raised concerns about the adverse impact of the moratorium on developing countries. The rise in imports of electronic transmissions, including movies, music, video games, and printed matter, has prompted India to seek policy space for the sector.
Global Perspectives: While developed countries like the US, Australia, and Japan favor an extension of the moratorium, India’s stance underscores the ongoing debate between developed and developing nations regarding the regulation of e-commerce and its impact on revenue generation.
